Tabs placed in a <pre><code></code></pre> block are stripped and line breaks are removed leaving a single continuous line of text. This occurs when switching from html to visual editors. Is there a setting in TinyMCE to avoid this?

BEFORE:

AFTER:

Here it even garbles the code and spits parts of it out the <pre>...

EDIT:

I seems the best option is to remove the <code> tag entirely and leave the pre. This still has the issue of removing duplicate blank lines, but it keeps the pre untouched even when switching between editors.